Nielsen, global measurement company, has for the first time, launched its Breakthrough Innovation Report in Australia, highlighting selected products which are classified as ‘breakthrough innovations’ in the market and outlining critical and actionable lessons for the grocery industry.
The 2016 Breakthrough Innovation Report reviewed 10,770 consumer products that were introduced to the market during 2014. The products were assessed in regards to their distinctiveness, relevance and endurance – whether they delivered a new value proposition, generated a minimum of $4.5 million in annualised first year sales and achieved at least 90 per cent of year-one sales in their second year.
Nielsen’s research indicated that 25 per cent of new products did not stay on the shelf after the first year of launch and today, 53 per cent of products on grocery shelves were launched in the last five years. Throughout 2014, only 48 out of 10,770 product launches in the Australian grocery category were considered ‘breakthrough innovations’.
Thais Gill, Innovation Practice Leader at Nielsen, outlined: “The Report details why innovation is vital in today’s increasingly competitive environment. Successful innovation is the key to delivering real incremental dollar growth – it’s critical to get right and it’s astounding how many get it wrong.”
Some of the Breakthrough Winners for 2016 include:
· Helga’s Lower Carb Bread
· Old El Paso Stand ‘N Stuff
· McCain’s Healthy Choice Frozen Ready Meals and,
· Arnott’s Shapes Light & Crispy
“One of the key themes to emerge from our analysis of ‘Breakthrough Winners’ is that these innovations succeed because they solve a consumer’s challenge – people hire new products to help resolve a struggle. Take for example, the launch of Old El Paso Stand ‘n’ Stuff. Its unique flat bottomed shaped tacos was designed to address the mess involved in the process of making and eating tacos,” Gill added.
The research indicates that innovation initiatives that are successful resolve well-defined yet poorly performed jobs with purpose and efficiency.
“Lessons to take away from this year’s winners is that breakthrough innovation requires a deep understanding of consumer pain points and problems – it is hard work but is attainable for any company of any size in any category,” Gill concluded.